Market Outlook 23-09-2009

Nifty, finally managed to close above 5000. More importantly it traded above 5000 for most part of the day. Financial sector was the most sought after for the day. HDFC gained almost 5% to hit a new yearly high while LIC Housing continued to surge as it gained more than 6.5% to move past 800. Other financial stocks to do well were India infoline, Uco Bank and Allahabad bank. Mid cap IT stocks were also in demand and buying was seen in stocks like Moser Baer, FSL, Mphasis, Rolta and Polaris. Other significant gainers were Ranbaxy, Zee, Orchid, TTML, Patel Engg, LITL and APIL. Certain strong gainers from the last week witnessed some profit taking. This list includes the likes of Bharat Forge, Bharti, JP Associates, Indian Hotels and Divis Lab. Nifty is likely to move towards 5120-30 in coming days. Strong momentum is seen in stocks like Tata Motors, LIC Hsg, Mphasis, Ranbaxy, TCS and SBI and sharp upside even from current levels cannot be ruled out in these stocks. Some others like Patel Engg, HDIL, Pantaloon and Moser Baer have seen fresh breakout and more upside is likely in these if they sustain above 498, 336, 339 and 96 respectively. India infoline moved past 148 and now has targets of 159 and 167 in coming days. Overall, the trend remains positive. Nifty now has immediate support around 4955-60 and then around 4910.